At present, judging from market feedback, the tight supply of MLCC will continue into 2018. Many manufacturers are actively expanding production to respond. In the long run, expansion is not only to meet existing demand, but also to prepare for future market growth expectations. A few days ago, Murata executives accepted an interview with the international electronic business situation, predicting that by 2018, the situation of MLCC in short supply may continue
Murata (China) Investment Co., Ltd. Marketing Director Takehiro Goi mentioned in an interview with International Electronics that the shortage of MLCC is a hot topic in the industry in 2017, and we predict that this trend will continue next year. This reflects an upward trend in the semiconductor and electronics industries, and the entire industry is preparing for the next peak. In the future, we will further strengthen the sales and customer technical support service system in China, and at the same time will continue to increase equipment investment and factory construction.
Based on the forecast of the development trend of the global semiconductor industry, in 2018, Murata will continue to stabilize the foundation of the communications market business, and look for new opportunities in the automotive electronics, energy control, medical and other markets, and explore new business models for the Internet of Things.
In 2018, the automotive electronics industry will continue to grow in demand driven by the background of intelligence and electrification. Due to the popularization of ADAS systems, the demand for highly reliable automotive components and sensors is expected to further expand. In the traditional automotive market, in 2018, Murata will continue to focus on automotive power transmission systems, active and passive safety systems, infotainment systems, etc., to provide high-quality, high-reliability automotive components and sensors.
Public information shows that Murata MLCC grew steadily in 2017, driven by needs, especially the growth of the automotive electronics market and smartphones brought good effects. Murata believes that despite uncertainties, the trend of global economic strength will remain unchanged. In the electronics industry, the demand for electronic components is still strong. At the same time that the growth of smart phones in China slows down, market demand will be released by the further functional complexity of smart phones and automobiles.
Indeed, driven by the upgrading of consumer electronics, the vigorous development of automotive electronics, and the continuous expansion of the Internet of Things market, the passive component market has entered a business cycle.
Fenghua Hi-Tech recently stated that the price of normal electronic components will be reduced by 5%-10% every year, but the MLCC price increase cycle is once every 3-5 years. Since the second half of last year, Fenghua Hi-Tech has raised the adjustment three times, with an overall range of 5%-30%. The supply cycle has changed from 20 days to 3-6 months. However, there is a certain gap with Japanese manufacturers in terms of equipment and materials.
Japanese manufacturers are leading the way in higher-end markets such as automobiles. According to the international electronics market, TDK currently produces more than 10 billion MLCCs per month, most of which are automotive-grade capacitors. Mainly large size. However, there is currently no expansion plan for MLCC.
Domestic passive component agents said that the price increase of MLCC gradually subsided at the end of the year, and the shortage situation continued until at least the first half of 2018 to be relieved. According to feedback from end customers, this year’s out-of-stock price increase has had a certain impact on production, but there has been no suspension of production. This may reduce the output of finished products, and at the same time, it is feared that the original materials will be replaced with higher specification devices. the costing payment. However, it is undeniable that there are challenges to the competitiveness of terminal products under supply fluctuations, and terminal manufacturers that are less resistant to supply chain risks may face greater pressure.
The current MLCC original factories are expanding production, which shows that the upstream is optimistic about the subsequent market demand, but the expansion of production increases the capital investment. In the short term, it will benefit from the short supply of the market. In the long run, only the middle and low-end products can continue to upgrade to the high-end in order to seek higher profits. Japanese manufacturers are turning to higher-end markets. Domestic manufacturers should also seize the business cycle and be guided by technology research and development and new markets. The upgrade of terminal products will enable the next peak to come. Ultimately, it still needs to be achieved through component upgrades.
